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Tariffs And Trade Liberalization With Network Externalities

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  • Kenji Fujiwara

    ()
    (Kwansei Gakuin University)

Abstract

This paper constructs a reciprocal market model of intra-industry trade in network goods to consider the implications of network externalities for an optimal tari policy and the welfare e ects of bilateral tari reductions. We show that the degree of network externalities nontrivially a ects the sign of the Nash equilibrium tari . Then, we prove that network externalities amplify the gains from tari reductions. These results help better understand the implications of traderelated issues in network industries.

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File URL: http://192.218.163.163/RePEc/pdf/kgdp71.pdf
File Function: First version, 2011
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Bibliographic Info

Paper provided by School of Economics, Kwansei Gakuin University in its series Discussion Paper Series with number 71.

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Length: 20 pages
Date of creation: May 2011
Date of revision: May 2011
Handle: RePEc:kgu:wpaper:71

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  1. Alberto Portugal‐Perez & José‐Daniel Reyes & John S. Wilson, 2010. "Beyond the Information Technology Agreement: Harmonisation of Standards and Trade in Electronics," The World Economy, Wiley Blackwell, vol. 33(12), pages 1870-1897, December.
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